Leases

3 Months Ended

Sep. 30, 2022

Note 5. Leases

The Company has operating leases for corporate offices and warehouse facilities worldwide. Additionally, the Company leases cars, copy machines and laptops that are considered operating leases. Some of the Company’s leases are non-cancellable operating lease agreements with various expiration dates through June 2035. Certain lease agreements include options to renew or terminate the lease, which are not reasonably certain to be exercised and therefore are not factored into the determination of lease payments. In August 2022, the Company entered to a material lease agreement to extend the lease term at its office building and manufacturing facility in Madison, Wisconsin through 2035.

Operating lease costs were $2.3 million and $2.3 million during the three months ended September 30, 2022 and 2021, respectively, not including $0.1 million and $0.1 million, respectively, of short-term operating lease costs.

Cash paid for amounts included in the measurement of operating lease liabilities was $2.2 million and $2.5 million during the three months ended September 30, 2022 and 2021, respectively. Operating lease liabilities arising from obtaining operating right-of-use assets were $12.2 million and $0.9 million, during the three months ended September 30, 2022 and 2021, respectively.

Operating lease right-of-use assets and operating lease obligations are represented in the table below (in thousands):


	September 30, 2022			June 30, 2022
Beginning balance operating lease right-of-use assets	$	16,798		$	22,522
Lease asset added		12,203			3,522
Amortization for the year		(2,212	)		(9,246	)
Ending balance operating lease right-of-use assets	$	26,789		$	16,798

Beginning balance operating lease obligations	$	19,020		$	25,609
Lease liability added		12,199			3,209
Repayment and interest accretion		(2,232	)		(9,798	)
Ending balance operating lease obligations	$	28,987		$	19,020

Current portion of operating lease obligations	$	4,864		$	8,567
Non-current portion of operating lease obligations	$	24,123		$	10,453

Maturities of operating lease liabilities as of September 30, 2022 are presented in the table below (dollars in thousands):


	Amount
2023 (remaining 9 months)	$	6,938
2024		2,678
2025		4,247
2026		3,344
2027		3,193
Thereafter		26,263
Total operating lease payments		46,663
Less: imputed interest		(17,676	)
Present value of operating lease liabilities	$	28,987
Weighted average remaining lease term (in years)		8.5
Weighted average discount rate		8.6	%